MHIC NASCLA Contractors Practice Exam

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If the contractor does not reimburse the fund in full after 10 days of receiving notice, what may the Commission do?

  1. Cancel the contractor’s license

  2. Revoke all permits

  3. Sue the contractor for reimbursement

  4. File a disciplinary action

The correct answer is: Sue the contractor for reimbursement

When a contractor fails to reimburse the fund in full after a specified notice period, the appropriate action for the Commission involves pursuing reimbursement through legal means. Suing the contractor for reimbursement is a direct and effective method for enforcing the obligation to repay the fund. This reflects a legal recourse that a regulatory body can take when financial responsibilities, as outlined in contractual or legal agreements, are not fulfilled by the contractor. The other options may involve different consequences but do not specifically address the immediate action regarding the contractor’s failure to reimburse. For example, canceling a contractor's license or revoking permits are broader punitive measures that might be considered after multiple infractions or more serious violations. Filing a disciplinary action might imply a formal process of accountability that can take time and may not necessarily resolve the immediate financial issue. Thus, pursuing legal action for reimbursement is a precise and relevant approach to ensuring financial obligations are met.

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